Township CX report 2023

The Township CX Report 2023, conducted by Rogerwilco and Survey54, provides an in-depth analysis of consumer behaviour, spending, and savings trends in South African townships. The report is based on a survey of over 1,000 individuals living in these communities, aiming to shed light on their spending habits, brand perceptions, and the impact of digitalisation on their economic activities. The study reveals that despite facing challenges such as high unemployment and low household income, these communities represent a significant market segment with billions of rands in spending power. The report also highlights the rise of local brands and the increasing use of online platforms for selling products and services.

Key Figures

• 24.35% of South Africa’s population lives in townships, equivalent to 11.6 million people.
• 60% of respondents have sold products and services online or know someone who has.
• 34% of respondents spent between R1,000 and R2,000 on local fashion brands.
• 12% of respondents have used eKasi delivery, a township-based delivery service.
• 59.3% of respondents said price is a major factor in choosing one brand or product over another.
• 51% of respondents shop at local township spaza shops daily.
• More than 51% of respondents are part of one or more stokvels, a type of credit union popular in South African communities.

Key Takeaways

• Local brands and township-based delivery services are on the rise, indicating a shift towards supporting local businesses and entrepreneurs.
• The majority of respondents have engaged in online selling, suggesting that digital platforms are becoming a significant avenue for income generation in these communities.
• Price is a significant factor in brand choice, indicating that value for money is a key consideration for consumers in these communities.
• The high frequency of shopping at local spaza shops suggests that these businesses play a crucial role in the township economy.
• The popularity of stokvels indicates a strong culture of communal saving and investment in these communities.

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